Food business investors are majorly concerned about two major parameters; investment and the return on investment. And the best choice for any food business investor is a low investment with high returns and through this blog we discuss how this can be achieved. The type of food business receiving a good amount of returns today is the cloud kitchen concept, and this is due to the follow reasons.
1. Less space, less investment
To start a cloud kitchen, you only need kitchen space even as small as 250 sq. ft. This is a plus point when you select a location and the real estate value is less than what you would originally invest in a café or restaurant.
2. No service staff required
Since the focus area of cloud kitchen is just operational online, although there is a requirement for delivery partners, service staff is not at all required. This saves you on hiring service staff and you only need to recruit kitchen staff.
3. Concentration on ambience is non-essential
When a restaurateur is only operating a kitchen without a sit down area, there is no requirement of keeping the ambience, theme and setting in mind. This saves on a large chunk of your interior design costs.
Now keeping in mind how a cloud kitchen works and why it is preferred overall, there is a cloud kitchen model that ensures 1 times the investment and 3 times the return. This model is known as ‘Multi Brand Cloud Kitchen’. The question you may have in mind is how does this model work? This can simply be explained as – One Kitchen, One Team, 3 Brands! But for this model to be a success, three like areas of food and cuisine need to be selected for the three individual brands. This is a great option for food business investors who want to see their returns on investment in a short span of time. To give you more clarity on why this is the best option for investors, we shall discuss these aspects.
1. Investment for one
The investment to be made in a multi brand cloud kitchen is to be made just for one cloud kitchen i.e.; for one kitchen area space of a minimum of 300 sq. ft. This saves up on your investment at the get go.
2. Running costs
Expenses and costs are huge overheads when it comes to operating any food business. As we learnt before, for a cloud kitchen there is a complete avoidance of service staff. But let’s take a closer look at the running costs for a multi brand cloud kitchen
· Cost of staff
In a multi brand cloud kitchen, you only need to recruit kitchen staff for one cloud kitchen. This is because the same staff will do the dish preparation of the other 2 brands as well. And here is where you save on your recruitment costs of the other two brands
· Raw materials
Selecting the right cuisines for each brand is important and Consulture suggests brands with like cuisines and food to avoid different mise en place. This facilitates the saw ingredients being used for all the three brands which means you would not have to account for any out of the box ingredients expenses.
3. Online positioning
While you are operating all the three brands under a single roof, the brands positioning online would be as three different brands.
Let’s bring an example into the picture as to how this would operate. Brand A – Biryani, Brand B - Tandoor, Brand C – Kebab Rolls. The raw materials and ingredients required for all these three brands would be the same, and can easily be facilitated under one roof. The kitchen staff would have to specialize in these areas and trained on standard recipes. These dishes prepared will be featured online as three separate brands. This would mean thrice the order frequency and thrice the revenue.
The Consulture team hopes this helped you. Invest smart, invest multi brand cloud kitchen!
